The European Union stepped its fomenting trade war against the U.S. with a €26 billion ($28 billion) round of import tariffs, announced almost immediately after the U.S. rolled out a 25% tariff on steel and aluminum coming from the bloc.
U.S. steel, agriculture, and consumer goods are set to face steep import tariffs into the EU from April after the bloc agreed to reintroduce tariffs brought in during the first Donald Trump administration. The latest tranche of EU tariffs would account for 5% of U.S. imports to the union, which amounted to €531.6 billion ($580 billion) last year.
The move came shortly after the U.S. reintroduced what it called “true” 25% tariffs on steel imports and a new 25% tariff on aluminum imports. Unlike during the first Trump administration, there will be no exemptions on products that are otherwise not available in the U.S.
The suspended tariffs will be reintroduced on April 1, while fresh tariffs are expected to be rolled out following consultation by April 13.
In line with warnings emanating from the U.S., tariffs are expected to have the biggest impact on European consumers. Included in the proposed tariffs are a host of popular U.S. consumer products, including Bourbon whiskey, jeans, and Harley-Davidson motorcycles.
The newest tariffs, which are expected to equate to €18 billion worth of goods, are intended to match the expected value of the U.S.’s tariffs on the EU.
European Commission president, Ursula von der Leyen, left the door open for negotiations with the U.S. before they are implemented next month.
The U.K. was also hit with U.S. import tariffs but has yet to retaliate.
‘You need both hands to clap’
Retaliation from the EU marks a significant step up in a trade war that has rocked global markets. Trump is determined to reshore U.S. manufacturing and said on Sunday he was prepared to let the U.S. slip into recession as part of his request to do so.
Trump has taken a tougher stance against the EU in his second term, with which the U.S. recorded a €198.2 billion ($216 billion) trade deficit in 2024, according to figures released on Tuesday.
Von der Leyen struck a somber tone as she delivered news of retaliatory tariffs against the EU’s biggest export partner.
“We deeply regret this measure. Tariffs are taxes. They are bad for business, and worse for consumers. They are disrupting supply chains. They bring uncertainty for the economy,” said von der Leyen.
“Jobs are at stake. Prices will go up. Nobody needs that – on both sides, neither in the European Union nor in the United States.”
The EU’s Commissioner for Trade and Economic Security, Maroš Šefčovič, said the EU was part of the solution, not the problem, when it came to tackling global steel overcapacity, with prices subdued after low demand in China saw steel flood other markets.
“Last month, during my visit to Washington to raise these points, it was indeed clear that the European Union isn’t the problem, making today’s measures even more unjustified,” said Šefčovič.
“I argued to avoid the unnecessary burden of measures and countermeasures. But you need both hands to clap.”
